Question

You work 44 hours at Candelaria's Tortilla Factory (CTF), You earn $15.00 per hour and you get paid 1.5 times

your base rate for hours worked over 40 hours. You pay 6.25% for Social Security, and 1.45% for Medicare.
You also pay $83.00 for your health insurance. You also put 3% of your gross pay into 401(k). How much is
your take home pay?

Answer 1

$537.87

Explanation:

First, we need to determine our total pay which will be 40 hours times our $15 per hour to be $600. For the extra hours above 40, we are payed 1.5 times as much.

$15 * 1.5 = $22.5 * (44-40) = $90 additional pay

$600 + $90 = $690 total pay

Now, we calculate all of our deductions.

Subtract social security to be

690 * (1-0.0625) = $646.875

Medicare Deduction

646.875 * 0.9855 = $637.50

Health Insurance

$637.50-83 = $554.50

401k Deduction

$554.50 * 0.97 = $537.87